Cash Disbursement Timber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $24,000 is paid for computer services. Sales revenue is forecast as follows Month Sales Revenue February $180,000 March 220,000 April May June 230,000 270,000 250,000 July Required Prepare a schedule of cash disbursements for April, May, and June. Do not use a negative sign with your answers. 290,000 Timber Company Schedule of Cash Disbursements April, May, and June Lumbers purchases Wages Operating expenses Lease payment Total disbursements April May June $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer $Answer
Cash Disbursement Timber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $24,000 is paid for computer services. Sales revenue is forecast as follows Month Sales Revenue February $180,000 March 220,000 April May June 230,000 270,000 250,000 July Required Prepare a schedule of cash disbursements for April, May, and June. Do not use a negative sign with your answers. 290,000 Timber Company Schedule of Cash Disbursements April, May, and June Lumbers purchases Wages Operating expenses Lease payment Total disbursements April May June $Answer $Answer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer $Answer $Answer $Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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Transcribed Image Text:Cash Disbursement
Timber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70
percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages
are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10
percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of
$24,000 is paid for computer services. Sales revenue is forecast as follows
Month Sales Revenue
February $180,000
March
220,000
April
230,000
May
270,000
June
250,000
July
290,000
Required
Prepare a schedule of cash disbursements for April, May, and June.
Do not use a negative sign with your answers.
Timber Company
Schedule of Cash Disbursements
April, May, and June
Lumbers purchases
Wages
Operating expenses
Lease payment
Total disbursements
April May
June
$Answer $Answer $Answer
Answer Answer Answer
Answer Answer Answer
Answer Answer Answer
$Answer $Answer $Answer
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